Oil prices saw little change following a 3% decline in the previous session, with the market remaining apprehensive about demand for the rest of the year and signs suggesting a potential de-escalation of tensions in the key Middle East producing region.
Brent futures edged up by 29 cents, or 0.3%, reaching $87.58 a barrel, while U.S. West Texas Intermediate (WTI) crude futures traded 20 cents higher, or 0.2%, at $82.89 a barrel at 0413 GMT.
The previous session witnessed both benchmarks sliding by 3%, driven by concerns over lower-than-expected fuel demand for the year amidst sluggish economic growth in China. Additionally, oil inventories in the U.S., the world’s largest crude consumer, experienced a rise.
Analysts at JP Morgan underscored in a late Tuesday note that global oil consumption in April thus far has fallen short of expectations by 200,000 barrels per day (bpd), averaging 101 million bpd. This figure represents a decrease from the forecast made in November, which predicted a rise of 2 million bpd by this time.
Simultaneously, investors are downplaying the likelihood of a significant retaliatory response from Israel following Iran’s missile and drone attack on April 13. The attack was purportedly prompted by Israel’s alleged killing of Iranian military leaders at a Syrian diplomatic site on April 1.
The stability in oil prices amidst these developments reflects the cautious sentiment prevailing in the market. Uncertainties surrounding global demand dynamics and geopolitical tensions in the Middle East continue to influence oil markets, prompting investors to closely monitor unfolding events for potential impacts on supply and demand fundamentals.
